-
WHAT DEFINES A MORTGAGE LOAN APPLICATION
What constitutes a mortgage loan application? How does the mortgage loan application work? What is an “application” that triggers an obligation to provide a Loan Estimate? What is the loan estimate? What are the rules and regulations on the loan estimate and how does the process work?
-
1 Reply
-
What is a Mortgage Loan Application?
A mortgage loan application is complete when the lender has received six pieces of information:
- The applicant’s name
- Social Security Number (SSN)
- Income
- Property address
- Estimated value of the property and loan amount
Once these are provided, the lender must deliver a Loan Estimate.
Loan Estimate (LE)
The Loan Estimate is a 3-page form explaining your mortgage’s key terms and costs.
Rules & Regulations
Lenders must provide applicants with a Loan Estimate within three business days of their application. The LE includes specifics about interest rates, monthly payments, closing costs, and possible rate changes.
Process
Submission: Submit the required information.
Loan Estimate Issuance: Delivered within three business days.
Review & Shop: Compare offers before moving forward.
This process promotes transparency and lets you understand your options before committing to anything.